Categories Earnings, Health Care

Gilead Sciences (GILD) stock falls as Q4 earnings miss estimates

Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ: GILD) reported a decline in fourth-quarter earnings, despite a modest increase in revenues. Earnings fell short of expectations, while revenues beat. The company’s stock dropped soon after the announcement during Monday’s extended trading session.

Gilead Sciences Q4 2019 earnings infographic

Fourth-quarter adjusted earnings decreased to $1.30 per share from $1.44 per share a year earlier. Analysts were looking for a bigger bottom-line number.

Gross margin was negatively impacted by an increase in selling costs amid inventory write-downs, which was partially offset by lower royalty expenses and R&D expenses.

Net income, on an unadjusted basis, came in at $2.7 billion or $2.12 per share, compared to flat earnings in the prior-year period. The improvement primarily reflects favorable tax effects and gains from equity securities.

Revenue up

Revenues, meanwhile, edged up 1% year-over-year to $5.88 billion and exceeded the market’s prediction. At $5.8 billion, product sales were up 2%. Product sales in the U.S market were unchanged from the prior-year period, but Europe registred a model decline.

Product-wise, higher sales volumes of HIV drug Biktarvy pushed up overall sales. However, it was partially offset by a drop in the sales of chronic hepatitis C virus products.

Outlook

For fiscal 2020, the company currently forecasts product sales in the range of $21.8 billion to $22.2 billion, and unadjusted earnings between $5.15 per share and $5.55 per share. On an adjusted basis, full-year earnings are forecast to be in the $6.05-$6.45 range. The management sees research and development expenses to increase in the mid-single-digit percentage.

Related: Gilead Q3 2019 Earnings Conference Call

Gilead Sciences shares made strong gains this week and closed Tuesday’s regular session higher. The stock, which witnessed significant volatility in the past twelve months, rose 17% since the beginning of the year.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Earnings: KB Home (KBH) Q2 2024 profit rises despite lower revenues

Homebuilder KB Home (NYSE: KBH) on Tuesday announced financial results for the second quarter of 2024, reporting an increase in net income. Revenues were down 3%. The company’s net income

What to expect when General Mills (GIS) reports its fourth quarter 2024 earnings results

Shares of General Mills, Inc. (NYSE: GIS) stayed green on Tuesday. The stock has dropped 5% over the past one month. The processed foods company is scheduled to report its

Lennar Corporation (LEN) Earnings: 2Q24 Key Numbers

Lennar Corporation (NYSE: LEN) reported total revenues of $8.8 billion for the second quarter of 2024, up 9% year-over-year. Net earnings attributable to Lennar were $954 million, or $3.45 per share, compared to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top